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BorgWarner Charges Up Honda’s Engine with Turbochargers

Zacks

BorgWarner Inc. BWA announced that it has supplied wastegate turbochargers for Honda’s HMC new three-cylinder 1.0-liter gasoline direct-injected engine. Initially, the engine is available only in the Civic models of Asia and Europe.

BorgWarner’s compact turbocharger upgrades engine productivity and improves its performance by reducing emissions, enabling to attain a power output of 95 kW (127 HP), along with swift engine response.

Few characteristics of BorgWarner’s B01 turbocharger include a closely-packed, robust design with less noise and vibration. The turbocharger has the capability to resist temperatures up to 950 Celsius and has rotational speeds of up to 285,000 rpm. Along with fuel efficiency, it offers good torque characteristics over the complete speed range.

Per Frederic Lissalde, president and general manager of BorgWarner Turbo Systems, the deal with Honda will help the company increase its presence in Asia and across other parts of the world. This move will also brace its position as a leading provider of turbocharging technologies.

BorgWarner is also set to benefit from its expansion strategies by constructing turbocharger manufacturing plants in Asia. In Oct 2016, it had started constructing a plant in Rayong, Thailand to produce turbochargers for all Asia-based global automakers. This was intended to help meet the growing demand from the Japanese automakers.

Earlier, in 2015, BorgWarner’s majority-held joint venture, BorgWarner Transmission Systems Korea, had opened a new manufacturing facility in Jincheon, South Korea to produce various automatic transmission components, along with providing space for engineering, sales and administrative functions.

Price Performance

BorgWarner’s shares have rallied 19.8% in the last three months, thus outperforming the Zacks categorized Automotive-Original Equipment industry’s gain of 15%.

Zacks Rank & Key Picks

Currently, BorgWarner carries a Zacks Rank #4 (Sell).

BorgWarner Inc. Price and Consensus

BorgWarner Inc. Price and Consensus | BorgWarner Inc. Quote


Some better-ranked stocks in the auto space are Allison Transmission Holdings Inc. ALSN and Volkswagen AG VLKAY, both sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Expected long-term growth rate for Allison Transmission Holdings and Volkswagen are 11% and 17.5%, respectively.

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